China Construction Bank sets up JV

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China Construction Bank has announced details of a new leasing business which will trade as CCB Financial Leasing Co.

A business licence has been granted to the arm by China's State Administration for Industry and Commerce, Thomson Financial reported from Beijing. To begin with, the business will operate with capital of 4.5 billion yuan (A$0.7 billion).

The leasing company is a joint venture between China Construction Bank and Bank of America, which has an 8.19 per cent interest in the former.

China Construction Bank will hold the majority stake in the venture at 78.1 per cent. Bank of America will own the remaining shares.

The mergers and acquisitions news follows the Chinese firm's announcement that it has been granted the status of a qualified enterprise annuity fund trustee and bank account administrator in the country.

During the third quarter of 2007, the bank's net profit was 23 billion yuan.